Home » Currency Option Trading » Currency Options Trading – Dollar Index Candle Chart 30th September 2009

Currency Options Trading – Dollar Index Candle Chart 30th September 2009

USD Index - Currency Options Trading 30th September 2009

The technical picture for the US dollar continues to get worse with each passing week, with the last five days simply adding to the gloomy picture, and suggesting that last Thursday’s positive up bar, was simply a one trick pony, and unlikely to provide any platform for a sustained recovery in the short term. Indeed, on every occasion of the last five days, the high of the trading session has stalled at precisely the same point each day, confirming the bearish view ( if any were needed, ) despite the fact that we are still trading marginally above both the 9 day and 14 day moving averages which have just crossed giving a potential bull cross signal. Given the repeated failures outlined above, this seems highly unlikely, and with the ADP figures early today coming in far worse than expected, this does not bode well for Friday’s NFP data, which if they follow a similar pattern will push the prospect of rate rises ever further over the horizon, leaving the US dollar as the low rate yield for the carry trade, replacing the once popular Japanese yen. If the figures are bad on Friday, then this could push the index below the 76 floor, and open up a much deeper move possibly as far as 71 or 72 in due course.

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